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Part 4. Examining Process

Chapter 75. Exempt Organizations Examination Procedures

Section 6. Exempt Organizations Returns Inventory and Classification System

4.75.6  Exempt Organizations Returns Inventory and Classification System

4.75.6.1  (04-01-2003)
Introduction

  1. The Exempt Organizations Returns Inventory and Classification System (EO RICS) is used for research and to identify and select EO return and non-return units for examination.

4.75.6.2  (04-01-2003)
EO RICS

  1. EO RICS is a system that provides:

    1. Users access to return and filer information related to the filing and processing of EO returns;

    2. Functions that support the EO examination and research program; and

    3. Facilitates the selection of EO returns with conditions that suggest a high potential for noncompliance.

  2. EO RICS primary users are:

    1. Exempt Organizations Examination Classification, which will print EO RICS returns for delivery to the Exempt Organization field groups; and

    2. Exempt Organizations Examination Planning and Programs, which uses EO RICS for research and analysis purposes.

  3. EO RICS provides access to:

    • Return information

    • Entity information

    • Filer information

    • Other administrative and supportive information such as the return received date, the statute date, and return selection information

  4. All information is maintained on a relational database that allows access through Programmer written application or Structured Query Language (SQL), generated by query software or written by an EO RICS User.

  5. EO RICS permits the EO returns described in subsection 7 to be:

    1. Viewed on the screen,

    2. Printed,

    3. Sampled statistically, and

    4. Established on AIMS, Audit Information Management System, and EOIC, Exempt Organization Inventory Control, in conjunction with printing the returns.

  6. EO RICS can be used for either individual or bulk requests for viewing, selecting, and printing of returns.

  7. The following returns are available on EO RICS and can be viewed and/or printed:

    • Form 990, Return of Organization Exempt From Income Tax

    • Form 990-EZ, Short Form Return of Organization Exempt From Income Tax

    • Schedule A, Form 990 and 990-EZ

    • Form 990-T, Exempt Organization Business Income Tax Return

  8. Transcribed line items for the following returns are available on EO RICS for compiling information and for conducting research and/or analysis, but cannot be viewed or printed:

    • Form 11-C, Occupational Tax and Registration Return for Wagering

    • Form 730, Monthly Tax on Wagering

    • Form 940, Employer’s Annual Federal Unemployment (FUTA) Tax Return

    • Form 941, Employer’s Quarterly Federal Tax Return

    • Form 945, Annual Return of Withheld Federal Income Tax

    • Form 990-PF, Annual Return of Withheld Federal Income Tax

    • Form 1041, U.S. Income Tax Return for Estates and Trusts

    • Form 1041-A, U.S. Information Return Trust Accumulation of Charitable Amounts

    • Form 1096, Annual Summary and Transmittal of U.S. Information Returns

    • Form 1120-POL, U.S. Income Tax Return for Certain Political Organizations

    • Form 4720, Return of Certain Excise Taxes on Charities and Other Persons Under Chapters 41 and 42 of the Internal Revenue Code

    • Form 5227, Split-Interest Trust Information Return

  9. EO RICS allows the querying of a database of transcribed return information and related data based on a specified criterion. This data allows immediate access without requisition of the original or amended return.

    1. EO RICS is able to query return information based on multi-year criteria.

    2. Under EO RICS application bulk print option, returns can be selected through statistical sampling.

    3. The Return Classification Sheet may identify the return's examination potential and other pertinent data such as entity and prior examination history.

4.75.6.3  (04-01-2003)
Interaction of EO RICS with AIMS and EOIC

  1. An individually identified EO RICS return or a batch of returns may be printed and established on AIMS and EOIC using the EO RICS application printing process.

    1. EO RICS establishes a return on AIMS using the AM424 command code and an overnight batch process.

    2. EO RICS establishes the same return on EOIC also using an overnight batch process.

    3. All returns selected for examination by EO RICS give the user the ability to input the special project code, source code, condition code, and group the return is being assigned.

  2. EO returns that do not have a EO RICS return available for printing may be established on AIMS and EOIC using a similar process.

  3. Use the following disposal codes (DC) for all non-examined closings of EO RICS printed returns:

    DC DESCRIPTION/USE
    25 Excess Workload for Area Office or POD
      This code should be used by classification to survey EO RICS returns in status 08 (not assigned to group) using Form 5596, TE/GE Non-Examined Closing.
    35 Surveyed Excess Inventory
      This code should be used by classification only to close non-EO RICS returns in status 08 due to excessive inventory using Form 5596, TE/GE Non-Examined Closing.
    33 Error Accounts with No Returns
      This code should by used to close accounts established in error where the filed return has not been secured. An EO RICS printed return and a return printed from Guidestar disks are not filed returns for purposes of using this Disposal Code. Thus, an EO RICS return established in error where the filed return has not been secured may be closed using this Disposal Code on Form 10904, Request for Record Deletion from AIMS/ERCS. The use of this code is subject to approval by the EO Classification Manager.
    99 Information report and Miscellaneous
      This code should be used to close information report returns and other miscellaneous accounts using Form 10904, Request for Record Deletion from AIMS/ERCS.

4.75.6.4  (04-01-2003)
Returns Inventory and Classification System (RICS) Business Owner, Single Point of Contact and Advisory Board

  1. The TEGE Executive Steering Committee appointed the Director, EP Examinations as the business owner of the RICS system. The committee also created the RICS Single Point of Contact (SPOC) position.

  2. The SPOC position is responsible for monitoring the RICS system by coordinating cross-functionally within TEGE and be a single point of contact (SPOC) for RICS users. The analyst in the SPOC position reports to the RICS business owner.

  3. In order to coordinate with each function and with the RICS programming team, the RICS Advisory Board (RAB) was created. The RAB is chaired by the SPOC and has one functional coordinator from each TEGE function as well as the Team Leader from the RICS programming staff. The RAB may be expanded, as needed, by the SPOC.

  4. The RAB meets quarterly or more often if needed.

  5. The RAB is responsible for the cross-functional coordination and administration of RICS including Request for Information Services prioritization, training, software maintenance, licenses, and other miscellaneous items.

    Note:

    See Exhibit 4.75.6-1 for a flow chart for RAB Coordination.

Exhibit 4.75.6-1  (04-01-2003)
RAB Coordination Flowchart

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